Opmobility · EURONEXT:OPM
Opmobility — Plastic Omnium — FY2021 Earnings Presentation
53 slides from Opmobility's earnings presentation, Feb 22, 2022
Slide 1: 2021 full-year results
2021 full-year results February 22nd, 2022 Laurent Favre, CEO Félicie Burelle, Managing Director Kathleen Wantz-O’Rourke, Group CFO & CIO
Slide 2: Greater agility amidst market turmoil, with strengthened positioning in growth markets
Greater agility amidst market turmoil, with strengthened positioning in growth markets Further flexibilization to help navigate volatile markets Strong acceleration in hydrogen with major milestones reached to accompany the market’s electrification Reinforced positioning in China with growing market
Slide 3: 2021 Executive Business Highlights
RECORD 165 ORDER INTAKE STARTS OF PRODUCTION 2021 Executive INCREASED Business 10.7% CONTENT Highlights OF SALES GROWTH IN CHINA in strategic regions In a (+4.1 pts / Chinese auto production) Challenging Market 8% GREER OF SALES IN BEVS TURN-AROUND (+2 pts /auto production) with profitable operating
Slide 4: A slower rebound than expected in 2021
A slower rebound than expected in 2021 ⁄ Automotive production evolution 94.8 (In million vehicles) 92.1 87.7 92,2 86 85.2 89,6 87.5 81.5 81 71.6 74.1 71.6 2019 2020 2021 2022 2023 2024 2025 IHS production February 2022 [0;3.5t PC+LCV] IHS production January 2021 [0;3.5t PC+LCV] 2021 ANNUAL RESULTS
Slide 5: 2021 deeply impacted by chip shortage
2021 deeply impacted by chip shortage ⁄ Automotive production ⁄ Automotive production in M vehicles by region in 2021 vs 2020 -9.1% NORTH AMERICA 81.5 74.1 Stable EUROPE 40.1 41.4 37.8 36.3 -4.8% 9.6M LOST PRODUCTION CHINA OF VEHICLES +6.6% IN 2021 FY H1 H2 FY H1 H2 REST OF ASIA 2021 IHS forecast 01
Slide 6: 2021 guidance achieved with strong FCF
ECONOMIC SALES* OPERATING MARGIN FREE CASH-FLOW +4.6% 4.2% €251M 2021 of sales guidance achieved with 2021 strong FCF generation Growth 4-5% >€220M of sales FY 2021 ADJUSTED GUIDANCE * PO economic sales like-for-like change. 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022 6
Slide 7: Further cost and cash optimization has mitigated the impact of stop&go
Further cost and cash optimization has mitigated the impact of « stop&go » without compromising future growth INCREASED AGILITY FINANCIAL PERFORMANCE RESILIENCE ──────────────────────────────────────────────────── (IN €M) Labor flexibility to face stop&go 8 017 +4.6% Efficient cost reduction program
Slide 8: Highlights FY 2021
HIGHLIGHTS FY 2021 STRENGTHENING OUR GROWTH PROSPECTS & VALUE-ADD POTENTIAL 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022
Slide 9: Strengthening our growth prospects & value-add potential
OPERATIONAL INNOVATION SUSTAINABILITY EXCELLENCE Strengthening our growth prospects & value-add potential 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022 9
Slide 10: Operational Excellence
OPERATIONAL EXCELLENCE 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022
Slide 11: China: outperformance and strong dynamic with BEV OEMs
CHINA: outperformance and strong dynamic with BEV OEMs MAJOR COMPETITIVE POSITION 2021 ECONOMIC REVENUE: €939M ─────────────────────────────────────────────────────────────────────── ──────────────────────────────────────────────────────────────── #1 in exterior parts, MS: 22% +10.7% LFL vs. 2020 #2
Slide 12: Growth markets: Extensive production footprint in China
GROWTH MARKETS: Extensive production footprint in China Shenyang Dadong 2 R&D CENTERS 34 4 Hefei Shanghai Lingang (2) NEW PLANTS* PLANTS 2 in 2022 2 in 2023-24 R&D centers New Plants * 3 new plants for Industries and 1 new plant for Modules 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022 12
Slide 13: Growth markets: High exposure to BEV markets
GROWTH MARKETS: High exposure to BEV markets ⁄ Automotive production ⁄ PO Economic Sales M units M€ 93% 92% 95% 97% 97% 98% 7% 8% 5% 2% 3% 3% 2019 2020 2021 2019 2020 2021 BEV market share Other powertrains BEV Contribution to PO turnover PO turnover related to other powertrains Sources: IHS automot
Slide 14: Growth markets: high number of launches in China and North America
North America Europe 32 44 GROWTH LAUNCHES LAUNCHES 165 LAUNCHES MARKETS: in 2021 high number of which of launches in China and 58 in China strong acceleration Asia, in North America, China excl. China BEVs: two strategic 58 24 LAUNCHES LAUNCHES 21% markets OF LAUNCHES in 2021 2021 ANNUAL RESULTS -
Slide 15: Growth: major launches in 2021
GROWTH: major launches in 2021 Audi Q4 e-tron EV Lucid Air EV Rivian EV Seat Cupra Born EV Peugeot – new 308 Bumpers, Bumpers and tailgate Front-end modules, Tailgate PHEV Fuel systems Front-end modules, (Mexico) Active Grille Shutter (Poland) (France) Center console • Car of the Year (USA) (Germany
Slide 16: Order book: further acceleration in fast growing segments
ORDER BOOK: further acceleration in fast growing segments ⁄ Enhanced positioning in BEVs Rivian EV DongFeng-Honda GM Optiq EV SUV Renault 5 EV Echo Audi eQ5 Bumpers Tailgates for 2 BEVs Bumper grille Bumpers Front-end modules (USA) (China) (USA) (France) (Germany) • 0utsourcing of bumper • New iconi
Slide 17: Increased content: further penetration in BEVs and ICE in strategic regions
INCREASED CONTENT: further penetration in BEVs and ICE in strategic regions ⁄ PO becomes Mitsubishi’s preferred partner in metal ⁄ Geely subsidiary developing EV brand to plastic fuel systems substitution ⁄ Active grille shutters for the Lambda ⁄ First contracts for the Triton (Thailand) and Alpha m
Slide 18: Efficiencies: progress update on transformation plan
EFFICIENCIES: progress update on transformation plan INDIRECT PURCHASING DESIGN & DEVELOPMENT FIT ─────────────────────────────────────────────── ─────────────────────────────────────────────── ─────────────────────────────────────────────── Bundling Robotic process automation Finance & IT processes
Slide 19: Innovation
INNOVATION 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022
Slide 20: Electrification: a leading comprehensive offer in hydrogen
ELECTRIFICATION: a leading comprehensive offer in hydrogen Passenger vehicle FUEL CELL STACK the heart of the fuel HYDROGEN VESSEL cell power system specifically designed to ensure very high pressure resistance INTEGRATED HYDROGEN SYSTEM, including the fuel cell stacks and the balance of plant compo
Slide 21: Electrification: launch of New Energies division
ELECTRIFICATION: launch of New Energies division ⁄ A division incubated in CES, specializing in hydrogen mobility for all types of transportation • 300 employees, o/w > 200 engineers in Europe and China • €300M invested since 2015 • A unique international production capacity 10,000 hydrogen vessels
Slide 22: Electrification: significant milestone achievements towards our hydrogen ambitions
ELECTRIFICATION: significant milestone achievements towards our hydrogen ambitions ⁄ Secured biggest HPV project for New Energies to supply hydrogen storage systems to HYUNDAI ⁄ Partnership with ALSTOM to develop high-end hydrogen storage systems for the railway sector ⁄ Production will start in 202
Slide 23: Electrification: AVL strategic partnership in hydrogen
ELECTRIFICATION: AVL strategic partnership in hydrogen ⁄ Fuel cell system co-development • 2 new product families in order to cover in a nutshell all market needs • Family-owned group based in Austria >150kW • €1.7bn sales in 2020, of which 50% in electrified powertrains • 20 years experience in Fue
Slide 24: Added-content for smart cars: Partnership for the next ADAS generation
ADDED-CONTENT FOR SMART CARS: Partnership for the next ADAS generation ⁄ BODY PANEL FUNCTIONALIZED WITH 4D IMAGING RADAR • Use of the exterior panels’ surface as a giant radar aperture • Better complex environments perception (resolution, field of view…) • Electronic-Electric architecture simplifica
Slide 25: Sustainability
SUSTAINABILITY 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022
Slide 26: PO's carbon neutrality action plan in the operations
Objectives PO’s carbon neutrality action plan in the operations approved by and aligned with SCOPES 1 & 2: neutral in 2025 REDUCE REPLACE COMPENSATE ENERGY CONSUMPTION RENEWABLE ENERGY CO2 REDUCTION (electricity & gas) ────────────────────────────────────────────────── OUTSIDE THE COMPANY ──────────
Slide 27: PO's carbon neutrality action plan in the value chain
Objectives PO’s carbon neutrality action plan in the value chain approved by and aligned with SCOPE 3: -30% in 2030 ACTION PLAN WITH SOLUTIONS FOR OUR CUSTOMERS SUPPLIERS & TRANSPORTERS & END-OF-LIFE TREATMENT • Light weighting, Aerodynamics • CO2 footprint as a selection criterion • Electrification
Slide 28: Progress in all Sustainability KPIs
SAFETY Progress YOUTH 0.69* in all Sustainability KPIs 875 FR2 divided by 2 apprentices + VIE in 2 years + trainees in 2021 (1.2 in 2020 / - 42%) (804 in 2020 / +9%) WOMEN IN SENIOR 2025 TARGET: MANAGEMENT WOMEN IN EXECUTIVE 15.7% 1,000 MANAGEMENT (14.7% in 2020 / +7%) 38% in the Executive Committee
Slide 29: FY 2021 Financial Results
FY 2021 FINANCIAL RESULTS 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022
Slide 30: 2021 annual results – key messages
2021 ANNUAL RESULTS – key messages ⁄ Strong recovery from COVID ⁄ Adapt and flex ⁄ Solid progress in H1, followed by at the maximum level against 2020 an unexpected drop in H2 ECONOMIC SALES OPERATING MARGIN NET RESULT-GROUP SHARE +4.6% €303m €126m LFL in 2021 in 2021 in 2021 -14% in 2020 €118m in 2
Slide 31: Sales per business
Sales per business ∆ ∆ In €M FY 2020 FY 2021 Outperformance in % LFL PO Industries 5,628 5,826 +3.5% +4.5% +0.9 pt PO Modules 2,104 2,191 +4.1% +4.8% +1.2 pt Economic revenue 7,732 8,017 +3.7% +4.6% +1.0 pt Joint Ventures 659 784 +19.0% +17.7% NA Consolidated revenue 7,073 7,233 +2.3% +3.3% -0.3 pt
Slide 32: Growth and outperformance in key geographies of the Group
Growth and outperformance in key geographies of the Group EUROPE NORTH AMERICA CHINA ASIA (EXCL. CHINA) % OF ECO SALES* 53% -2pts 26% -1pt 12% +1pt 7% +1pt AUTO PRODUCTION -4.8% 0.0% +6.6% +7.5% PO SALES +0.5% +2.9% +10.7% +17.9% OUTPERFORMANCE +5.3pts +2.9pts +4.1pts +10.3pts * +1pt change in other
Slide 33: Premium brands: 39% of PO's sales in 2021 vs 38% in 2020
Premium brands: 39% of PO’s sales in 2021 vs 38% in 2020 ⁄ FY 2021 economic sales per customers Others Toyota 8% Hyundai Motor Company 3% 26% Volkswagen Group 4% ow Audi: 9% Jaguar Land Rover – Tata ow Volkswagen: 8% 5% ow Porsche: 4% Ford 5% Renault Nissan Mitsubishi 6% ow Renault: 5% Stellantis 17
Slide 34: Impact of semi-conductor crisis
Impact of semi-conductor crisis ⁄ Estimated revenue impact ⁄ Estimated gross impact before mitigation in M€ -810 Inflation Raw Materials 8 827 Energies +590 8 017 Logistics Stop&Go 30% -1 370 -30 67% €230m Covid 3% • Stop&Go represented 2/3rd of additional costs related to the crisis • Arbitrage bet
Slide 35: 2021 Profit & Loss account
2021 Profit & Loss account In €m 2020 2021 H2 2020 H2 2021 Consolidated sales 7,073 7,233 4,111 3,449 Cost of materials and parts sold -4,979 -4,941 -2,865 -2,313 In % of sales -70.4% -68.3% -69.7% -67.0% Production costs -1,452 -1,462 -770 -798 In % of sales -20.5% -20.2% -18.7% -23.1% Net Research
Slide 36: 2021 Profitability per business
2021 Profitability per business In €m and % of sales 2020 2021 H2 2020 H2 2021 118 303 234 69 Operating margin 1.7% 4.2% 5.7% 2.0% 100 271 205 62 PO Industries 1.9% 5.2% 7.0% 2.5% 19 32 29 7 PO Modules 1.0% 1.6% 2.5% 0.7 % 648 771 477 310 EBITDA 9.2% 10.7% 11.6% 9.0% 568 677 417 269 PO Industries 11
Slide 37: 2021 Profit & Loss account
2021 Profit & Loss account In €m 2020 2021 Operating margin 118 303 In % of sales 1.7% 4.2% Other operating expenses -334 -56 ow impairments -255 -6 In % of sales -4.7% -0.8% Financial expenses -69 -51 In % of sales -1.0% -0.7% Income Tax +31 -60 Net Result -253 136 In % of sales -3.6% 1.9% Net Resu
Slide 38: 2021 Cash-flow statement
2021 Cash-flow statement In €m 2020 H1 2021 H2 2021 2021 Operating margin 118 234 69 303 EBITDA 648 461 310 771 Net operating Cash Flow 453 409 207 616 In % of sales 6.4% 10.8% 6.0% 8.5% Capex and development -374 -149 -144 -294 In % of sales -5.3% -3.9% -4.2% -4.1% Change in WCR -45 -108 +37 -71 ow
Slide 39: 2021 Key financial metrics
2021 Key financial metrics ⁄ Net debt ⁄ Net debt/EBITDA (in €m) 807 854 1,2 1,1 2020 2021 2020 2021 ⁄ Shareholders’ equity ⁄ Gearing (in €m) 1 950 2 058 41% 41% 2020 2021 2020 2021 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022 39
Slide 40: Strong liquidity with slight increase in 2021
Strong liquidity with slight increase in 2021 ⁄ Liquidity as of 31/12/2021 ⁄ Bond issues per maturity (in €Bn) 2.6 2.7 500 Undrawn & confirmed 1.9 300 300 1.9 credit lines Cash & cash equivalent 0.7 0.8 2020 2021 2022 2023 2024 2025 2026 3.9 years MATURITY (vs 4.4 in 2020) NO MAJOR REPAYMENT before
Slide 41: Outlook
OUTLOOK 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022
Slide 42: 2022 automotive production assumptions
2022 automotive production assumptions ⁄ Automotive production – IHS Forecasts ⁄ PO management assumptions in million of vehicles +9.3% 81.0 74.1 -5% IHS ASSUMPTIONS vs IHS PER REGION 37.8 36.3 39.5 41.6 Europe & Americas WEAK VISIBILITY +4.2% +13.8% Strong growth ON RECOVERY OF MARKETS Asia Mild gr
Slide 43: Challenges & Opportunities
Challenges & Opportunities SHORT TERM LONG TERM • Maintain momentum and continue • Accelerate innovation to adapt (Omega, Digitalization) MAINTAIN TECHNOLOGY LEADERSHIP MARKET VOLATILITY + ADD MORE CONTENT • Order intake acceleration • Ramp up Carbon Neutrality roadmap PREPARE FOR MARKET REBOU
Slide 44: FY 2022 Financial Guidance
ECONOMIC SALES OPERATING MARGIN FREE CASH-FLOW FY 2022 Financial Guidance Outperformance 5%-6% > €260m of sales 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022 44
Slide 45: Conclusion
CONCLUSION Pursuing our TRANSFORMATION TOWARDS FLEXIBLE BUSINESS MODEL with proven resilience CONNECTED AND CLEAN MOBILITY in a challenging backdrop REINFORCED LEADERSHIP IN ALL DIVISIONS with global footprint & innovative offers COVERING ALL ELECTRIFICATION (BEV, PHEV, FCEV) MORE ADDED CONTENT FOR
Slide 46: Dividend 2021
Dividend 2021 PROPOSED SHAREHOLDERS’ MEETING DIVIDEND OF ON APRIL 21ST, 2022 €0.28 AT 5PM CET (Pavillon Dauphine - Paris) per share PAYABLE ON MAY 2ND, 2022 32% payout 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022 46
Slide 47: Calendar
⁄ APRIL 21ST, 2022 – Shareholders’ general meeting ⁄ APRIL 27TH, 2022 – First-quarter 2022 revenue Calendar ⁄ MAY 12TH, 2022 – Capital Markets Day ⁄ JULY 25TH, 2022 – First-half 2022 results 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022 47
Slide 48: Disclaimer
Disclaimer This presentation contains certain forward-looking statements concerning Plastic Omnium. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding the future Plastic Omnium’s results or any other performance indicator. In so
Slide 49: Appendices
APPENDICES 2021 ANNUAL RESULTS - FEBRUARY 22ND, 2022
Slide 50: A world-leading family business in the automotive industry
A world-leading family business in the automotive industry Created in 1946 and majority owned by the founding family through Burelle SA (59.4%) 27TH worldwide automotive supplier B 2021 Eco. Revenue €8.0 bn 137 plants 30,000 employees 93 A strong ESG +4.6% LFL 31 R&D centers in 25 countries customer
Slide 51: Shaping the future of sustainable and smart vehicles
Shaping the future of sustainable and smart vehicles Industries Modules Connectivity, Autonomy Electrification with Modularization CO2 Reduction & Functions Integration Hydrogen Systems & Customization INTELLIGENT EXTERIOR CLEAN ENERGY NEW ENERGIES SYSTEMS (IES) SYSTEMS (CES) CAPITAL INTENSIVE LOW C
Slide 52: Electrification: strong commercial pipeline and traction in hydrogen
ELECTRIFICATION: strong commercial pipeline and traction in hydrogen… STRONG 100 85 GLOBAL COMMERCIAL PROJECTS CUSTOMERS FOOTPRINT PIPELINE WORLDWIDE …feeding 2030 ambitions 25% 10-15% 10% N°1 MARKET SHARE MARKET SHARE MARKET SHARE HYDROGEN FUEL CELL INTEGRATED HYDROGEN STACKS MOBILITY HYDROGEN VESS
Slide 53: www.plasticomnium.com
PLASTIC OMNIUM WWW.PLASTICOMNIUM.COM